Health systems around the world are shifting focus from research and development to distribution following vaccine news from Pfizer Inc
., Moderna Inc. and AstraZeneca Plc. In India, which is battling the world’s second-worst outbreak, Apollo Hospitals Enterprise Ltd
. this week said it is ready to inoculate 1 million people a day after the government unveils the deployment plan.
For IHH, the immunization drive comes at a time when medical tourism, a key revenue stream for hospitals, has disappeared as resurgences force countries to keep borders closed.
The company’s shares rose 0.2% to 5.58 ringgit at the close on Friday, taking the week’s gain to 2.4%.
Hospitals in Malaysia, the company’s home market, may earn 500 million ringgit ($123 million) in revenue from medical tourists
this year, the Malaysia Healthcare Travel Council said in September. That’s far short of the 1.7 billion ringgit the industry earned in 2019, and its earlier 2020 target for 2 billion ringgit.
Still, IHH said it expects to meet its target of doubling its return-on-equity in the next five years. Covid-related services in Singapore
contributed 10% to its third-quarter revenue, while their share from India was as high as 26%, Loh said.
“We will continue to grow, but in as capital efficient manner as possible,” he said. “Covid-19 doesn’t change that.” The company’s ROE stands at 3% at present.
Excerpts from the interview:
IHH’s expansion strategy in China
China’s recovery remains strong, as is growth in IHH’s hospital in Hong Kong
To open another hospital in Shanghai after starting facility in Chengdu; looking for opportunities at Greater Bay area in Hong Kong
IHH’s operations in India, North Asia and Turkey are “not far” from becoming profitable
IHH’s non-lira debt in its Turkish business to fall before year-end from 92 million euro as at November
IHH sold its 50% interest in Apollo Gleneagles Hospital Ltd., a venture in India, and the transaction is expected to be completed by year-end.
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